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GM Sets No Cap on Recall Victim Compensation FundBack


General Motors Co.’s victim compensation fund — which could face hundreds or even thousands of claims from anyone.

harmed in a crash in which air bags failed to deploy 2.6 million now-recalled Chevrolet Cobalts, Saturn Ions and other cars will face significant challenges before it starts accepting claims. The fund, announced Monday, faces significant questions from a member of Congress, lawyers and safety advocates over how difficult it will be to prove that crashes from a decade ago are linked to defective ignition switches. One thing is certain: GM likely won’t get a final tally on victim compensation for a full year. The Detroit automaker will place no overall cap on the compensation fund and will pay “whatever it takes” to resolve all claims, fund administrator Kenneth Feinberg said Monday at a press conference in Washington. He declined to offer any estimate of the total amount that will be paid until claims are reviewed.

Source: The Detroit News

Posted by Leana Kell on 04/07/2014